Gem Fell Four Days To Break 900 Points &Nbsp, Or Is Still Not The Real Bottom.

This week, due to several bad rumors, the market crashed: B shares, A shares, Gem All of which have fallen down continuously or even reached a new low level. Investment It seems that there is a hope in the crash, that is, the main contract of stock index futures is tenaciously rising, and the price earnings ratio of the gem has dropped to 46.76 times from the highest 80.01 times, a drop of more than 40%. In addition, the lifting of the ban on the sale of shares next week will ease the pressure and give the market some breathing space.

Since April 25th, the Shanghai and Shenzhen A share market has seen 4 consecutive trading day unilateral downturns. The Shanghai Composite Index has fallen through the 3000 point integer mark and continues to seek support.

At the same time, another battlefield has already been bloody and the gem composite index has broken down the 1000 point integer pass at the third time. Yesterday (April 28th) afternoon, the 900 point battle failed again, and finally ended with a 893.13 point historical low defeat, and it dropped 9.87% in just four trading days.

Is it a comeback or a flight? The dying growth enterprise market has returned to the crossroads for the third time, and the GEM companies in the "crowded bubble" process have once again become a major focus of the market debate.

Four spanaction Total daily fall by 9.87%

Since April, the concept of rare-earth, the iron and steel stocks and the chemical sector have been on the stage in Shanghai and Shenzhen two cities. The concept hot spots are emerging one after another. The market which is silent for a long time is again showing the heat of the early summer. The Shanghai composite index is shaking at the 3000 point.

However, there are always many similarities in hype stories. With the previous market phase adjustment market coming to the eve of the extreme frenzy of stocks, the current round of steel and chemical sector stocks speculation over the market has announced a dangerous approximation.

Since April 25th, after no new market hot spot has been effectively accepted, the Shanghai and Shenzhen two cities have turned downward into the adjustment market. The annual reports and the disclosure of the quarterly reports are close to the end of the GEM stocks, and all kinds of myths and auras are gradually fading away, and the adjustment of the growth enterprise market has gone ahead.

Statistics show that since the 4 trading days since April 25th, the gem composite index has fallen by 9.87%. It has been defeated after third point breakdown of 1000 points, and the 900 point integer pass has not been spared. At the same time, it has created 893.13 points from the August 20, 2010 gem index.

According to Wind statistics, China and Switzerland (300078, closing price 23 yuan), Lehman Optoelectronics (300162, closing price 27.22 yuan), Dagang road machine (300103, closing price 28.26 yuan) and Kangzhi Pharmaceutical (300086, closing price 20.12 yuan) and other annual reports, a quarterly performance of the face plate stocks fell, Shanghai, Shenzhen two city stock market decline in the forefront.

At the same time, three GEM stocks (300146, closing price 101.40 yuan), Watson biological (300142, closing price 96.03 yuan) and blue water sources (300070, closing price 88.09 yuan) have also been adjusted to varying degrees. Among them, health has been tested down to the entire number of 100 yuan / shares, while Watson's biological and Biyuan water price has dropped from three digit to "two digit club".

In addition, recently, the new landing gem's concentrating technology (300203, closing price of 16.96 yuan), Shu Tai Shen (300204, closing price 42.70 yuan) and Tianyu Information (300205, closing price 32.70 yuan) and a large number of listed companies issued earnings ratio gradually returned, while the tide is growing again.

46 times VS80 times "squeeze bubble" end?

In fact, as early as March this year, many market people have published their views that the new three boards, which are gradually approaching, will bring a little impact on the gem and the small and medium board.

Recently, behind the seemingly attractive high dividend payout, the GEM listed companies with various halos and high growth hats have been exposed to the annual reports and the quarterly performance of landmines, which has made many investors avoid it.

Statistics of the official website of the Shenzhen stock exchange show that as of April 28th, the total market value of the 209 listed companies of gem was 748 billion 360 million yuan, the market value of circulation was 220 billion 70 million yuan, and the average price earnings ratio was 46.76 times.

Statistics from the Shenzhen Stock Exchange also show that the peak value of gem's total market value this year is 839 billion 856 million yuan in March 24th, while the peak value of circulation market value is 240 billion 123 million yuan in April 21st. This year, the average price earnings ratio of the gem has been 80.01 times that of January 4th, and now it has dropped to 46.76 times, which has fallen by more than 40%.

It is worth mentioning that as early as last August, the new three Board companies flew together (430037, closing price of 7.90 yuan) to offer a private placement of no more than 9 million shares at a price of 5.5 yuan per share, corresponding to the 2009 diluted earnings ratio of 39 times, which has been very close to or even exceeded the valuation level of some GEM listed companies. At the same time, the average price earnings ratio of Shenzhen's main board is 26.08 times, and that of medium and small boards is 37.30 times.

So, is this "bubble bubble" the beginning or the end?

The 893.13 point is still not the bottom.

The composite index of GEM has dropped by 9.87% on four consecutive trading days since, while the average price earnings ratio of GEM listed companies has dropped to 46.76 times that of the current period, which is very close to the average price earnings ratio of small and medium-sized boards in Shenzhen.

After three consecutive drops of 1000 point integer pass and a record low of 893.13, has the GEM market that has been repeatedly squeezed bubble really hit bottom?

Wan Keyi, director of the Guosheng securities and Financial Research Institute, said that although the valuation level of the gem has obviously declined, and even gradually approached a relatively reasonable area, the cumulative effect of monetary policy tightening will directly lead to a simultaneous fall in the performance and valuation of listed companies. From overvaluation to rationale, it is only one stage in which the market is expected to take a new turn if it is to go from underestimation to underestimation.